I think world scale social networks as in an open "town square" are borderline impossible. Which is not that surprising as it's quite unnatural to talk and be seen by the entire world.
However, if you do try it, I still believe a central network is superior. I would opt for baseline moderation (content should be legal) after which any further moderation should be in the hands of the user, not the network. Bluesky has interesting ideas in this area. For example, you can say to always block sexual content, show a warning, or just show it. To each their own.
With that in place, a centralized network is superior as it tends to have excellent discovery, search, no weird syncing issues, it's centrally monetized, doesn't depend on lots of volunteer effort and the track record in keeping content online is far better compared to alternatives. That's a lot of benefits to consider.
The only real downside is the algorithms that dictate reach and how they are gamed.
Federated social media is a really bad idea. Having separate instances is fine if you want to carve out a community, it's the federation part that sucks.
It's very resource hungry and still can't manage to properly sync up content, likes and replies.
Discovery and search is very hard which beats the entire point of a social network, which is to find people and content.
Reliability is low as any volunteer may quit on a whim, taking down your content.
Instance moderation is very heavy-handed in that it not only dictates instance rules (which is fine) it also dictates federation. Which means you have no say in which outside content or people you can see. The solution is the dreaded "switch instance". Social media users don't know what an instance is, you're not getting it.
The culture on the Fediverse is: connect nobody. Extreme safetyism.
The lack of some type of ranked algorithm is a problem, not a solution.
Reach is a problem. Bigger accounts, institutions, companies, news, sports...get no reach on the Fediverse.
Bottom line: fully centralized social media or fully isolated ones. Federated is the worst of both worlds.